Saving vs. Investing vs. Spending – What’s your best bet?


In my book The $1K Investor: Simple, Smart Steps to Start Investing with $1K or Less, I differentiate between Saving and Investing. In this article, I’ll take it one step further and we’ll explore Saving vs. Investing vs. Spending – What’s your best bet!

Saving vs. Investing

SAVING is what you do with money that you want to keep safe so you have a financial cushion available. You might want to, or plan to, access the money in your Savings Account for upcoming expenses like, say, a car. Or, for an emergency or other unexpected event, like your refrigerator breaking down.

INVESTING is how you put your money to work. So that it GROWS for the future. When you invest in Stocks and Shares, for example, you let other businesses use your money. They put it to work inside their business.

How does investing work?

The growth of your investment is tied to the growth of that business and to the growth of economic activity overall.

INVESTING is a long-term process. Business growth can happen in one year, two years or 10 years. Some years are up, while other years are stagnant or down. The expectation is that healthy businesses grow over a long term. The investor gets a positive return on their money.

Similarly, when it comes to putting your money to use in your business, you have two choices: SPENDING and INVESTING.

So, what is spending?

SPENDING is for things that you need and want in your business, but they won’t help your money grow over time. For example, you spend money for the email service you use and for Zoom. You spend money on equipment like a microphone and your laptop.

  • Yes, even if you buy a Macbook Pro, that’s a business EXPENSE not an investment. It depreciates over time just like an Audi or a Lexus.
  • A business INVESTMENT is something that will help the VALUE of your business GROW over time. The VALUE of the ASSETS of your business must grow over time.


Saving vs. Investing vs. Spending

Are you ready to grow your biz?

The primary asset of your business is YOU. The primary asset of YOU is your brain.

Your brain is the creative engine that fuels your business. It’s what keeps you focused and moving forward. Your brain creates intellectual property – VALUE – that you can share with the world.

The VALUE that you create with your brain can be given away for free or it can be SOLD in exchange for money.

The more valuable your brain is, the more money you will make in your business.

The BEST investment you can make in your business is in your mind. Which is why mindset coaching is the number one investment I make in my business. If you’re ready to take your work DEEPER, INVEST in your business, and translate that into concrete growth in your money, apply here for 1:1 coaching with me.


Here are some of the results my clients shared with me this week:

  • K… enrolled a new life coaching client at $2,500 for 10 sessions.
  • N… raised her prices, created a new 10-session health coaching package, and enrolled her first client at $1500.
  • S… renewed 4 existing and enrolled 2 new Ayurveda clients in January. We restructured and increased the length of the programs she was offering to create long-lasting healing for her clients. S… sent me this message yesterday: I metaphorically and literally skip down the street after our sessions bc I feel lighter and excited.

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